HEATHER CONSTRUCTIONS V. UNION OF INDIA

WP(C)/10457/2020

AI Insights

The case involves M/s. Heather Constructions, a firm engaged in construction, which undertook a project for the National Health Mission (NHM). The petitioner filed a writ petition seeking a directive for the respondents, specifically respondents 4 to 6, to pay the admitted bill amount within a prescribed time. The dispute centered on the remaining balance of the contract payment after the petitioner had received a partial payment. The respondents argued that the remaining amounts were either retained pending certain inspections (like the lift operating license) or had been remitted to the Income Tax Department due to excess recovery. The court's decision focused on ensuring the petitioner received the due payments while addressing the procedural and statutory deductions and requirements.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 721488 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 01-12-2020
• Assessment Year: misc
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: M AJAY; K N RAJANI; K P SHIBU; ANILA PETER; SAJEN THAMPAN; ANIL RAJ
• Assessee Lawyers: V G ARUN; V JAYA RAGI; R HARIKRISHNAN; NEERAJ NARAYAN
• Keywords: Construction; Income Tax; Payment; National Health Mission; Lift Operating Licence

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH TUESDAY,THE 01ST DAY OF DECEMBER 2020/10TH AGRAHAYANA,1942 WP(C).No.10457 OF 2020(F) PETITIONER: M/S.HEATHER CONSTRUCTIONS, REPRESENTED BY ITS MANAGING DIRECTOR, T.C.9/1226,MANGALAM LANE,SASTHAMANGALAM, THIRUVANANTHAPURAM 695 010. BY ADVS. SRI.V.G.ARUN (K/795/2004) SMT.V.JAYA RAGI SRI.R.HARIKRISHNAN (KAMBISSERIL) SRI.NEERAJ NARAYAN RESPONDENTS: 1 UNION OF INDIA REPRESENTED BY PRINCIPAL SECRETARY, MINISTRY OF HEALTH AND FAMILY WELFARE, GOVERNMENT OF INDIA 110 001. 2 STATE OF KERALA,REPRESENTED BY PRINCIPAL SECRETARY HEALTH. 3 SECRETARY, FINANCE DEPARTMENT, SECRETARIAT, TVM 695 001. 4 STATE MISSION DIRECTOR (SMD), NHM, GENERAL HOSPITAL JUNCTION, THIRUVANANTHAPURAM 695 035. 5 THE CHIEF ENGINEER,NHM, STATE MISSION, GENERAL HOSPITAL JUNCTION, THIRUVANANTHAPURAM 695 035. 6 HSCC (INDIA) LTD.,DEPUTY GENERAL MANAGER, CORPORATE OFFICE E-R(A) , SECTOR -1, NOIDA (UP), 201 301. R4-R5 BY SRI.M.AJAY,SC R6 BY ADV. SMT.K.N.RAJANI WP(C) No.10457/2020 : 2 : R6 BY ADV. SRI.RADHIKA RAJASEKHARAN P. R6 BY ADV. SRI.K.P.SHIBU R6 BY ADV. SMT.ANILA PETER R6 BY ADV. SRI.SAJEN THAMPAN R6 BY ADV. SRI.ANIL S.RAJ BY GOVERNMENT PLEADER SMT.K.M.RASHMI THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01.12.2020, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) No.10457/2020 : 3 : J U D G M E N T ~ ~ ~ ~ ~ ~ ~ ~ ~ Dated this the 1st day of December, 2020 Petitioner, a Firm engaged in construction business, has undertaken a work on behalf of National Health Mission. The writ petition has been filed seeking for a direction commanding respondents 4 to 6 to effect the payment of the admitted bill amount to the petitioner within a time limit prescribed by this Court. 2. There is no dispute about satisfactory completion of the work under Ext.P1 Award and Ext.P2 Agreement, by the petitioner. The learned counsel for the petitioner submitted that the admitted bill amount is ₹1,49,58,311.71. It is an admitted case that the petitioner has already received an amount of ₹1,25,35,757/- on 24.10.2020. According to the petitioner, the balance amount would be ₹27,02,251/-. As per Ext.R4(j), after making statutory deductions, the amount payable would be ₹15,94,809/-. WP(C) No.10457/2020 : 4 : 3. The learned Standing Counsel for the 6th respondent submitted that the 6th respondent has already released an amount of ₹15,94,809/- due to the petitioner. The Standing Counsel further submitted that an amount of ₹5,52,986/- has been retained by the 6th respondent and the same can be disbursed after Electrical Inspectorate Authorities inspect the lift and grant lift operating licence. It is also submitted that an amount of ₹5,58,021/- has been remitted by the 6th respondent with the Department of Income Tax by effecting excess recovery from the petitioner. According to the counsel for the 6th respondent, the petitioner has already taken credit for the said amount from the Department of Income Tax. If these two amounts are taken into account, will be no substantial balance amount payable to the petitioner from the 6th respondent. 4. Counsel on either side submitted that this writ petition can be closed recording the submissions made by the counsel for the 6th respondent. 5. Accordingly, the afore submissions made by the WP(C) No.10457/2020 : 5 : counsel for the 6th respondent are recorded. The 6th respondent shall release the amount of ₹5,52,986/- retained by them to the petitioner on receipt of lift operating licence from the Electrical Inspectorate. The 6th respondent shall also extend necessary assistance to the petitioner to get credit of the excess payment made to the Income Tax Department, if required. Writ petition is disposed of as above. Sd/- N. NAGARESH, JUDGE aks/01.12.2020 WP(C) No.10457/2020 : 6 : APPENDIX PETITIONER'S EXHIBITS: EXHIBIT P1 A TRUE COPY OF NOTIFICATION OF AWARD DATED 30.01.2015 BEARING NO. HSCC/NRHM/SAT/KERALA/2014/3D CALL ISSUED BY THE 6TH RESPONDENT ACCEPTING THE FINAL OFFER FOR A TOTAL ESTIMATED CONTRACT PRICE OF RS. 24,08,20,739 (RUPEES TWENTY FOUR CRORES, EIGHT LAKHS, TWENTY THOUSAND, SEVEN HUNDRED AND THIRTY NINE ONLY). EXHIBIT P2 TRUE COPY OF THE FORM OF AGREEMENT DATED 03.03.2015 BETWEEN STATE MISSION DIRECTOR, NRHM GOVERNMENT OF KERALA FOR THE CONSTRUCTION OF 100 BED MCH BLOCK AT SAT HOSPITAL, THIRUVANANTHAPURAM , KERALA UNDERNRHM AND M/S.HEALTHER COSNTRUCTIONS T.C. 9/1226, MANGALAM LANE, SASTHAMANGLAM, THIRUVANANTHAPURAM 695 010. EXHIBIT P3 TRUE COPY OF THE COMPLETION CERTIFICATE DATED 30.06.2016 ISSUED AND SINGED BY THE 6TH RESPONDENT COUNTER SIGNED BY SUPT/MO SUPERINTENDENT MEDICAL COLLAGE HOSPITAL, THIRUVANANTHAPURAM. EXHIBIT P4 TRUE COPY OF THE LETTER COMMUNICATION AND MEMORANDUM OF PAYMENT BY THE 6TH RESPONDENT DATED 04.02.2019. EXHIBIT P5 TRUE COPY OF THE MEMORANDUM OF PAYMENT ISSUED BY THE 6TH RESPONDENT. EXHIBIT P6 TRUE COPY OF THE LETTER NOTIFICATION FROM HSCC TO NRHM DATED 11.06.2019 IWHT REF NO. HSCC/SAT-TVM/2016/77. WP(C) No.10457/2020 : 7 : RESPONDENT'S/S EXHIBITS: EXHIBIT R6 (a) TRUE COPY AGREEMENT DATED 03.03.2015 ENTERED INTO BETWEEN THE 4TH RESPONDENT REPRESENTED BY 6TH RESPONDENT EXHIBIT R6 (b) TRUE COPY OF GCC CLAUSE 25 VIZ SETTLEMENT OF DISPUTES AND ARBITRATION BEING THE RELEVANT PAGES OF THE AGREEMENT DATED 03.03.2015 ENTERED INTO BETWEEN THE PETITIONER AND 4TH RESPONDENT REPRESENTED BY THE 6TH RESPONDNET EXHIBIT R6 (c) TRUE COPY THE CLAUSE I (F) 1 (v) AND 1(x) OF SPECIAL CONDITION OF THE CONTRACT BEING THE RELEVANT PAGES OF THE AGREEMENT DATED 03.03.2015 ENTERED INTO BETWEEN THE PETITIONER AND 4TH RESPONDNET REPRESENTED BYTHE 6TH RESPONDENT. EXHIBIT R6 (d) TRUE COPY OF THE LETTER ISSUED BYTHE 6TH RESPONDENT TO THE 5TH RESPONDENT DATED 11.06.2019 EXHIBIT R6 (e) TRUE COPY OF THE LETTER ISSUED BY THE 5TH RESPONDNET TO THE 6TH RESPONDENT DATED 17.07.20-19 EXHIBIT R6 (f) TRUE COPY OF LETTER 5TH RESPONDENT DATED 14.10.2019. "